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tv   Markets Now  FOX Business  October 19, 2012 11:00am-1:00pm EDT

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down about 102 points. we have had earnings, wow. you have some movers weighing on the dow. i wanted to take a look at google. at 12:50 p.m. the stock was halted. reopened later in the day. we saw a significant move lower yesterday. here it is. pretty much flat on the deck right now. it did. as little as 676 yesterday. back to you. connell: more numbers now and this latest gallup pole. it shows governor mitt romney with a seven percentage lead
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over president obama. our next guest, our first guest of the day, things that both of these candidates deserve to lose. he compared their debate to watching a beginners tennis match. where both players cannot get the ball over the net. >> i think the polls reflect what was logically going to happen. you have to go back to 2008. at that time, the republican brand was at an all-time low. they were not happy with mccain and many did not like sarah palin. they were up against barack obama who could do no wrong. he only got 53% of the vote. fast forward four years, the economy has failed on him. he is no longer messiah in the eyes of anyone.
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the polls are reflecting that. connell: he is in big trouble. if gallup has it exactly right, he is in big trouble. if it is 52% for romney, obviously, it does not take a brain surgeon to figure out the president is in trouble. if you look at the staples, iowa still has a lead. wisconsin, without paul ryan would help out a lot. the president is doing pretty well. >> it looks like a disconnect now. i think as the election nears, that will change. i look at the tom bradley effect. it was widely assumed that he would win the governor and there. i think we will get to see the
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samm thing here. the electorate usually get these things right. obama has no record to turn to depending on unemployment, gdp growth, just about everything is turning against him. connell: i do not want to dig into numbers too much. where you think the race is? 291 obama and 246 romney. you think romney is where? >> i think he actually is. the electorate will move this in the other direction. it does not put failed president back into the office. it is a shame. i think we would be looking at a land slide right now if romney had a more clear message about economic growth. in the debate on tuesday night, it is very clear that he is running against his good ideas.
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he seems afraid to say things. there are some dangerous things that he said. the last thing a president wants to do is start a trade war with china. that has been a path of the shooting wars. he wishes he would get away from this stuff. americans always believed that they are good enough, that they do not need help. it is a bad message to a very ambitious country. connell: we will talk more about that later. i am sure it will come up monday night. not so much the domestic economy. thank you so much for coming on. >> thank you. lou: writing a letter to the white house and congress warning about the fiscal cliff. that the tax increase is coming and the spending cut taking effect at the end of the year.
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the consequences of inaction for stability in the global market for economic growth. millions of americans still without work. let's bring in cabin, market strategist. are you confident this will happen after the election? >> we are kind of running out of time on this. we are rapidly approaching the debt limit. probably february or march would be a reasonable guess when you had that. it will and the outcome election, not only for the president, but in senate that will be a key ingredient whether we move smoothly during that period of time. dagen: when something does get done to at least take care of this in the short run that it
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will be a permanent fix? it will surely be temporary which just moved these problems down the road for another year or even two years. >> it is always temporary until the next one. we have had 60, 70, 80 episodes where we automatically raise the debt limit. it is not about the artificial that limit anymore. it is about the weight of debt on the economy and the size of it. we have essentially doubled the amount of debt in terms of federal debt over the last five-six years. there is just some basic math here, if we do not sell this relatively soon, over the next three, four, five years, they will begin to look at us and be concerned about debt. dagen: do you think taxes will go up but not that the bush tax cuts will be allowed to expire? >> it all depends.
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we need to have growth in the economy. we need to have a public that has disposable income to spend. in a situation where we are now, that is the right answer. we are at a critical point here. we had a huge injection of spending in the economy over the last few years to get us out of the ditch. we need private initiatives, we need more confidence in the economy. dagen: kevin, thank you. connell: it turns out, and i guess this is not a big surprise, big bird costumes are becoming a big moneymaker this halloween. i think dagen is going to go as big burn.
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dagen: we will be right back. >> i have a lot more energy and my second debate. i got really well rested after the nice long nap i got in the first debate. [laughter] [ applause ]
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dagen: amtrak hitting the rails today. it is testing out if new high-speed train on a route between chicago and st. louis. it is expected to hit 110 miles per hour. 30 miles faster than its highest speed. a speed revision would give writers and alternative to road or air travel, as well as, promote economic development along that route. you have to be near people. that is the problem.
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good news for peanut butter buyers. prices should be dropping. they have arty fallen 50% from the spike last spring. thank you to mitt romney's comment about big bird. the costumes are selling big for halloween. so big in fact they are sold out. even the sexy big bird costumes. that is just creepy beyond belief. companies cannot make any more of them. look to manage to get a costume. see the little faith? connell: i cannot stand it.
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[ laughter ] dagen: do not do it. i want to see connell do that in real life. [ laughter ] connell: it is a quarter past the hour. dagen: it is not, actually. [ laughter ] i can out and signal you, trust me. nicole: let's take a look at some names on the move. we are looking at that dow jones industrials. the vix, the fear index, is to the upside. news out of europe. we are seeing the dow down 132 points. we have names weighed on the dow such as mcdonald's and caterpillar.
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we are also seeing general electric. take a look at the tech heavy nasdaq. it got hit yesterday. it is down almost 1.5%. let's take a look at some of the names on the move. marvel technology. you have several analysts got about eight of them, cutting and downgrading the stock. sandisk, they are climbing after the results topped expectations. back to you. connell: thank you. dagen: we will look at one way people are making money in real estate right now. connell: wayne rogers up in arms about something. we will talk to him about the study blaming the uncertainty in washington. the loss of millions of jobs. stay with us. rough day in the markets.
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here is a look at some currencies and how they are shaping up against the dollar and around the world. ♪
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>> at 21 minutes past the hour i have your fox news minute. health officials have confirmed the presence of a deadly fungus a national meningitis outbreak. it is still testing the two other medications. twenty people have died as a result of the outbreak. eight people are dead following a car explosion in lebanon today. it occurred in the busy part of a route during rush hour. this attack comes within heightened tensions. we have some positive news for the pakistani teenager who was shot by the caliban. officials at the british hospital, where the girl has been treated, say she has been able to stand for the first time since the attack and is communicating by writing. those are your news headlines.
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connell: thank you very much, julie. dagen: sales of existing homes fell last month. there simply was not enough supply out there. fewer homes were available to buy. connell: let's go to jeff flock. he is in illinois today. jeff: when you get the guys on wall street involved, that is your best reaction that housing is recovering. i want to talk to eric workman who is the vice president of the mac companies. they process homes, buy homes for investors. you used to sell them to guys like me, now you are selling them to wall street. >> that is correct. investors come into this market in a big way. you have a bearing degree of whether or not institutions want
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to do this. jeff: some people say i did not know what i am doing here. let's have some in with the expertise to it. we have someone who finished the basement. new systems. you can still buy these homes at distressed prices. turn them around and make a profit for investors. >> that is correct. we buy properties typically in the 50-$60,000 range. they require a lot of work. it into being in the neighborhood of 40-$50,000 ourselves. once the property has been redeveloped, the value is in the neighbor of 100-$150,000. jeff: that is a nice piece of property. take a look at the companies that are getting involved in
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this. they are building for rentals. other investment firms, as well, developing and getting involved in the way you are doing it. you have never seen wall street involved in this way to this extent in the past. >> certainly in commercial real estate. the apartment buildings and etc. this is their first entry into the single-family. jeff: look at the neighborhood. a very stable neighborhood. well maintained homes. this is the kind of distressed asset you would not have been able to buy in the past. now, you can buy in this nice neighborhood, essentially, and turn it around. >> that is correct. you stick a for-sale sign in the yard and it was sold. a lot of private ownership. stable atmosphere. schools are close. great atmosphere o invest in.
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jeff: wall street packaging these homes for sale. i do think real estate has turned around. i think it has and that is great. connell: there are numbers certainly to back that up. that was a great story. dagen: thank you so much, jeff. we have 35 minutes to go. blame washington, everybody. a new study shows aliens of jobs have been lost because of the uncertainty caused by our lawmakers down in d.c. wayne rogers is really fired up about it. connell: we were talking about this a little bit earlier. are the chinese really so concerned about mitt romney they would personally strengthen their currency ahead of the election? here is some of the winners on
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the s&p 500 today. up stocks on a down day. we will be right back. ♪ bob...
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tell your ctor if you have a heart condition or high blood pressure before taking it. with copd, i thought i'd miss our family tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today, 're ready for whatever sws our way. ask your doctor about symbicort. iot my firs prescription free. or click to learn more. [ male announr ] if y can't afford your medication, astrazeneca may be able to help. dagen: 1987, a dark day for the stock market. there is one dow component that has rocked it for investors. jobs at a premium in this country. a new study shows washington has cost us millions of them. that has waned rogers very upset. can china be so upset about a romney victory? we have evidence in the currency
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market. connell: we will talk about that and just a couple moments. today berks 25 years since the infamous block monday. it was the worst single day percentage drop in dow history. that was in 1987. nearly doubled the loss of 13%. some of the stocks that were in that dow then are certainly gone now. mcdonald's has been the best annual stock growth in the dow since then. dagen: proctor and gamble and mcdonald's are both up since 1987 when i was in first raid. [ laughter ] connell: you should have brought in pictures. dagen: let's take a look at some of those stocks 25 years later.
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nicole: when you are talking about 25 years later and you mentioned mcdonald's. here it is right now at 89.52. another name was merck. 47.51 write-down. we are also following coca-cola. 57.57. when we look at the dow jones industrials at 13,414, this is where we can take a wide shot. our job today is merely 1%. back then it was a 22% loss dropped. that would be equivalent to over 3000 dow points which would put us back to the 10,000 level. clearly, that gives you some better perspective to the type of moves it was. the traders, of course, talk about that day. they talk about the overflow. what a crazy day that it was.
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one guy said it was the second worst day in his life behind 9/11. connell: onto the issue of currency manipulator. you probably heard mitt romney talking about this. new tariffs on chinese goods in a possible trade war. is it possible the chinese would react and get out ahead of this by strengthening their currency on purpose? gordon chang is here to talk about that. what do you make of that? >> the economy is part of this flagship -- i am not surprised that they are trying to increase the value of their currency because they do want to take some of the wind out of the sales. after the election, we will see the chinese currency go back down again. they do this all the time.
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connell: it is very interesting, i think, the policy that romney is taking this time around, romney has been a tough talker on china. earlier this hour, john from forbes was on, he is supportive of many of romney's policies, but does not support how he has talked to china. >> i wish he would move away from some of that stuff about getting tough on china. it does not work. the voters do not believe it. these americans always believed that they are good enough that they did not need help that they do not need to be protected against others. it is a bad message. connell: the voters do not believe it. he thinks they should move away from it. >> i think that regardless of who is elected on november 6, we will see very different china policies. washington will have to react to
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beijing which is moving and all the wrong directions and trade. i know a lot of this is campaign rhetoric. it will really change the way the administration is going to deal with china. we really do not have a choice. connell: that is the point, do we have a choice? we need china and eight need us. the last thing you need in a slow economy, you have heard this over and over is a trade war. we certainly will not start it. we need to talk about trade and currency. connell: one at this donald trump like talk, the real tough talk, which, by the way, we have not done since president lyndon labeled the chinese as a
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manipulator of the currency, when it that eventually start a trade war? >> no. they cannot afford to do it. that is an incredible number. that number will go out this year because china's exports to europe are tumbling. china has been running these enormous deficits with the rest of the world. they cannot afford to start a trade growth. connell: what is really happening in china, by the way? the last month maybe has shown that the economy is stabilizing? >> i do not think so. they have at least one or two more quarters of declining growth. it is more like zero or 1% want you start looking at the electricity numbers, any fracturing surveys, it shows and economy in distress. connell: thank you very much,
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gordon. dagen: the president on the campaign trail. more details. do voters care? connell: action and our nation's capital is causing millions to lose their jobs. when rogers will be here. let's take a look at treasuries and see what the yield is. 10.79. ♪
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♪ >> i am lori rothman with your fox business brief. it is a feat of red dow on wall street. right now the dow is down 133 points. sony releasing new details on a plan to trim it global headcount by 10,000 at the end of march. 10,000 of those cuts will take place at its japanese headquarters. they also plan to close a factory in central japan. south korean film maker plans to nearly double its investment in
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indonesia over the next five years. costco the world's largest country in fourth largest -- that is the latest from the fox business network. giving you the power to prosper. ♪
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dagen: 18 days. eighteen days away from election day. taxes are always a hot topic. president obama hits mitt romney on his tax plan. >> he took another step on trying to sell us this $5 trillion tax cut that favored the wealthy. he took another swing at it and he whiffed. instead of telling us how he paid for it, he said, i will let
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you know afterrthe election. dagen: wayne rogers here. we are putting corporate taxes aside because we know the candidates essentially agree on that. he keeps hammering this $5 trillion tax cut and even people in his own campaign have reviewed that number. does he think that this somehow wins him both talking about mitt romney's plan? >> the issue always in tax reform is how will you pay for it. if you are going to give a cut, how are you pay for it? 's it is because there is a lot of work for it tax expenditures or loopholes that people are willing to put on the table to pay for it. when you get on the individual side, it is much more difficult. i think they are the probllm,
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the loopholes or expenditures that you may use to pay for it, happened to be things that americans really like. burbage deductions, exemptions of healthcare benefits from taxation. [ talking over each other ] dagen: the romney campaign does not agree with that $5 trillion number. someone in mr. obama campaign admitted that if you could take away enough deductions and breaks to add up, if you include the reduced debt, to add up to $4 trillion.% >> the reason this is so contentious is to get all those loopholes taking care of on the individual side, you would actually need to take away the mortgage tax deduction.
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romney is not saying that and people are staying away from it. americans love their burbage tax deductions. yes, theoretically, you could wipe out all of that. even the romney campaign is not saying we will get rid of the mortgage tax deduction. they would probably lose both if that is why this is so contentious on the individual side. on the corporate side, it is interesting how much agreement there is. the tax expenditures can pretty much pay for the tax cut. not the case on the individual side. dagen: there was a story that president obama would veto any deal that does not include tax increases on the rich. do you believe the obama campaign thinks that is a boat getter? >> i think they do think it is a vote getter.
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i think, yes, first of all, the president has set this for many months now. it is nothing new. i think he is showing leadership. he is sticking to his guns on this. he is drawing a line in the sand. [ talking over each other ] dagen: do you think that is what you hold the whole entire country hostage? just to tax people more? >> i think as a percentage of their income, they do not take the most tax in the country. that is what the issue is. increasing for those that are extremely wealthy. bringing a little bit more revenue into a very very difficult budget situation. dagen: mr. romney has made perfectly clear that he does not plan on making a tax cut to the
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wealthy. >> this is where the issue of those tax loopholes, and. what mr. romney has said is he wants to limit the deductions for the most wealthy people. and that is essentially allowing them to give a tax cut at the top. [ talking over each other ] dagen: that you reduce their rates, but he has said -- [ talking over each other ] dagen: they pay the same amount of taxes. >> yes. that is where you get very controversial. the question is, in these tax cuts like the mortgage deduction, like healthcare, where people really really love those deductions, at what point do you start taking them away? sure, for someone like mr. romney, these things do not
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mean very much. mr. romney will not specify who he is talking about when he talks about limiting the deductions. dagen: elayne, thank you so much. it was great to see you. connell: quarter till the hour. let's get to nicole petallides. nicole: taking a look at microsoft. we know that pc sales have been diminishing. you can see here today it has been lower after they came out with their numbers and the first-quarter profit which followed greater than expected 22%. 28.85. that is a loss of about 2%. the dow is down about one full percentage point.
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the tech heavy nasdaq has been under pressure since yesterday when google came out with their numbers. we are seeing the nasdaq composite down 1.5%. we are under some pressure here. 13328 is where we closed last week. connell: wayne rogers is here. unfortunately, he is not happy. not because he is here with us. dagen: speak for yourself. connell: congress causing thousands of jobs to be lost. dagen: take a look at some losers today on the nasdaq. they are plentiful. ♪ [ male announcer ] this is joe woods' firstay of work.
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connell: let's get to this new research now. policy uncertainty in d.c. has hit its highest level in nearly 30 years under president obama. it is costing americans over 2 million jobs. dagen: what does wayne rogers think of it? if you did not hate d.c., you certainly hate them now. >> i think they are right. @onnell: it is funny. this came up in the jon stuart interview that president obama did last night. suddenly, something will change. will it? even if romney wins, what will
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change with the atmosphere in d.c.? >> i do not think it is a question of the two parties agreeing or disagreeing as far as getting something done. you cannot just spend your way out of a recession. if you read paul krugman, which i think is retarded -- connell: oh, come on. >> it did not work. if the president comes back and does the same thing all over again, it will not work. dagen: with mitt romney, he would still have to deal with democrats and, you know, republicans can be equally rancorous. wayne, as a businessman, uncertainty about the tax code, certain tax increases, bush tax
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cuts expiring, does that change the way you operate? [ laughter ] >> no. it does not show up that way. it does show up in your plans for the future. a businessman cannot make a decision because he does not know what it is going to be. a lot of times we do make decisions based on taxes. take the mortgage deduction. people know if they buy a house they will get a certain amount of a tax deduction. that will be one of the things. if you cannot plan going forward, forget about it. connell: people say romney is elected or obama is back and for four years, it is not necessarily remove the uncertainty on election day. >> no. they have to do something. somebody has to do something.
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that uncertainty, certainty of any kind, even if it is bad news, it is better than uncertainty. connell: do you think they will fix the tax code? >> no. dagen: we need a little bit more than a one syllable and -- answer. >> everything that they did was great. walked away.urned back on it and why do it? they were smart guys. they brought up a lot of smart stuff. politicians are essentially people -- dagen: one thing that either of these dudes can do that they would do to create jobs? >> what? nothing. connell: it is economically challenged is what we will go
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with. have a good one. dagen: wayne, thank you so much. the st. louis cardinals are one world series. the pitcher gave away one run. a score of eight-three. cardinals can close out the series and game five tonight in st. louis. if the cardinals went, they will face the detroit tigers. the tigers swept the yankees last night with a score of eight-one. yankees started c.c. sabathia. the tigers started was lights out for detroit. he struck out ten batters in just under six innings. the new york papers are clearly taking the loss very well. connell: look at this cover on the post today. dear yankees, we do not date
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losers. signed new yorkers. this is all referenced to alex rodriguez trying to pick up young ladies while in the dugout. dagen: he asked for their phone numbers. connell: thank you for the explanation. dagen: you are the biggest loser. if you are a woman and due date a-rod, well, you are a loser also. connell: cheryl and dennis are up next. dagen: you suck. the yankees should be embarrassed. was that too much? [ laughter ] connell: no, it was fine. ♪
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sandra: good afternoon, everyone. i'm sandra smith. dennis: and i am dennis kneale. black monday, greatest percentage drop of the doll ever, could it happen again? you cannot afford to miss our crash debate coming up. sandra: and the focus of today's debate this segment our series leading up to election day. dennis: if you want to dress up as big bird because of mitt romney's new remark, to cost you big bucks to do with. sandra: stocks every 15 minutes, nicole petallides on the floor of the new york stock exchange. mccall, it is not black friday but it is not green friday either. nicole: the dow jones industrials down 147 points in that into percentage terms just over 1%. the tech heavy nasdaq under pressure since yesterday we heard from the google network. here's a look at the nasdaq
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composite down 1.7%, seeing some thought rated selling. all was down arrows. the vix has an up arrow. yesterday at 12:30 we got those numbers inadvertently and was halted. here's a look at where it is haltintrading right now. about where it opened after it reopened 3:20 p.m. well it recovered some, it is back to that level, and that certainly does not bode well for all those folks who got t thougy got a good bargain. back to you. dennis: thank you, nicole. october 19, 1987. influence they known as black monday when the stock market crashed in the dow lost a quarter of its value in a single session. leaving market industry for months.
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25 years to the day later some are saying it could happen again. gary kaltbaum joins us from kaltbaum capital management and matt mccormick. thank you for being with us. let's start with you. you see the changes are unlikely, but you look at that chart on what happened in that one day and it is truly scary. what are the chances that happen again this month? speaker this month it is likely unlikely. could it happen again? sure. when you see a situation like what happened yesterday with google mispricing, high frequency trading being an issue and the flash crash occurred in may of 2109% decline out of the blue, i get concerned when you see what happened. you are expecting elections to go up about an issue, the fiscal cliff to be resolved, the sick westernization issue to go away. all these issues are known, the
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market is expected to be handled easily. my opinion any of one of them go wrong, the market goes off. -@dennis: gary, when you look at the longer chart, where we have been since the '87 crash, maybe '87 was a buying opportunity, not the end of the world. >> '87 crash with a great opportunity. we hit a low within days of that and off to the races again because with the secular bull market, you are correct on that. i will give you one guarantee. we will essentially have another crash, but the world is littered with people calling for a crash for the past 25 years, they have been out there since i was born. you can't predict one, you never know what it will come, but there are too many derivatives out of there. the fed creating a bubble. i just don't know when or from what point. dennis: basically the same three
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and a half years or so since we bottomed in march 2009 on till right now. look at how similar the two met charts are from recovering stocks. here's what i want to know from you, mack. we went through the huge bull market, what are the chances were about to embark on another bull market from here? >> there are some chances however 2013 will be difficult year regardless of who wins. we have deep issues we have to address and if you look at the chart from 87-'90. the fed provided liquidity but% they did not do what bernanke did here. it did not provide clearance of dollartrillions ofdollars. posting a growth right now more on a sugar rush. i agree with gary, the crashes are out of the blue but the point we're looking for a bull market out have to say the fiscal issues addressed by our politicians in a more concrete
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way right now you are not seeing that happen. dennis: gary, we were just showing a chart of the rise in that same time post '87 compared to post '89. they are eerily similar. and the bull run in '92. could we be in the start over the next year of another big bull? >> look, 2013 starts the 14th year of what i call a secular air market that started in 2000. i said this would start to last about 17 years. then i think we can list off to the races if and only if we can get our debt bubble under control. if we can't, think that will continue to provide headwind and if you notice anything in the market right now, we will get in trouble because earnings are terrible because the economy is not growing enough. we have to get rid of the debt and then we can be off to the races again.
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valuations have come down a lot of people selling mutual funds which is actually good news going forward. dennis: we have been told buying and hold is dead. i have mutual funds in my 401(k), i never sold after '87, never so after 2000, never sold after '09 and look at where the stocks are. shouldn't you be in stocks matter what and just sit there? >> i think you have to be selective in stocks, buy for the longer term. dennis, when you look at the people buying and holding, they're usually high-frequency traders. i think when you look over the long-term i am much more bullish on stocks than bonds. but wit!!doubling the cost of lg increasing every day, you need to have stocks with high quality dividends to pace inflation. dennis: let let's remember any crash, bonds will save you. one last point, into september,
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cash returning 1.6% per year. stocks with dividends reinvested report 8% per year for the past 10 years. thank you so much gary kaltbaum and matt mccormick. >> thank you. sandra: 15 executives including bank of america, citigroup and morgan stanley writing to the white house and congress warning of the impending fiscal cliff. saying the consequences of inaction for stability and global financial markets for economic growth for millions of americans without work and for the financial circumstances of american businesses and american households would be very grave. look at the financial names, many of them are in the red, and dennis, actually jeffrey a immet ssaid this will be the big impat for 2013. they think there will be some sort of a solution.
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dennis: the implications and you have to believe they will work this out no matter what, and second i'm telling you a couple of years ago the banking executives never would dare have sent a letter to congress. they were the villains and the fact they're doing this and speaking up makes me think it shows we are beginning to heal. we have cyber attacks on financial institutions hitting their highest profile victim yet. fox business is all over this story because adam shapiro is working it from the beginning. >> is a continuation of what fox business broke last week on the cyber attacks on suntrust, the organization claimed responsibility for those attacks tied remotely to islamic terrorist groups now claiming responsible before tax going on this week and the most recent victim, hsbc. moving out of the united states hitting banks in other parts of the world. here's the statement we got from hsbc. the denial of service attempt to
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not affect any customer data but preventive service customers usc services including internet banking. we're taking appropriate action, we are pleased to say some sites are now back up and running. we are cooperating with the authorities and will cooperate with organizations similarly affected by such criminal acts. take a look at who has been hit in the past couple of weeks. using capital one, suntrust, regions financial, capital one again this week, dvd, and of course hsbc. the quick credit to the reporters at the fox website who have been in touch with cyber security personnel. there sources that the group anonymous claiming to be a part of this may be a part of it, but this is still half the fingerprint. dennis: classy sharing of the fault.
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sandra: all right, adam. thank you. candidates facing off monday on foreign policy. we bring in the big gun, former defense secretary for his take on it ahead. dennis: existing home sales back in the basement. what it says about the economy coming up. first, as we do every day at this time, take a look at the price of oil. down sharply.
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sandra: metals losing their luster on the weak housing data. phil flynn with a fox business contributor standing by on the floor the cme. what is going on with the silver trade? everybody said this would be betrayed by the end of the year, outperforming gold, up 18%, now all of a sudden it is not going so well. >> it is because europe kicked the can down the road, that is the big story down here today. what you're seeing is disappointment of the brussels eu summit to come to some type of agreement and traders are really selling this market because they are convinced that the summit actually made it more difficult for spain to ask for a bailout. basically angela merkel said if wewe aren't going to give money directly to spain, if they want a bailout, we will give it to the bank. spain has a lot of private asked for a bailout in the first place a lot of traders think they make that more difficult. what they mean is the odds of
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spain asking for a bailout before the end of the year probably isn't going to happen. it has been more negotiations how this will play out. right now that is very bearish for silver and gold. gold hit a one-month low. the "wall street journal" raised the possibility that europe needs to look at gold backed bonds for these countries. the eu is the second-biggest holder of gold reserves on the earth. traders said that could be a possibility that could be a way out of this crisis but today it has raised often more concerned about europe. sandra: phil flynn, great information. thank you. dennis: 15 past the hour, let's get the stocks every 15 minutes. nicole, the dow down 163, but two firms reporting. nicole: under pressure for the dow jones industrials. let's start off with some good news, these two companies, a lot of people are familiar with this
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wisconsin-based company. another based in california. the truth of the matter is they have come out, coming up with a third-quarter profit which was above the market expectations, and look at this up about 10%. another great mover today up about 5% as they continue to see revenue and margins rise across their segments, so we are seeing some good news. some of this comes by what we are seeing in europe, seeing it offsets and better forecast going forward. so that's something we're watching. the dow down 1.2%, we continue to see accelerated selling. still higher for the week, but losing that edge. sandra: thank you. no happy meals for mcdonald's. we will tell you why the stocks headed lower. dennis: former defense secretary on the final presidential debate of foreign policy.
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okay, i have a different chart. going that way, does that make difference ? look at verizon. it's so much more than the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.
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>> 20 minutes past the hour. hello, everyone. the car bomb attack in lebanon
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killed at least eight people and injured dozens more. this is the worst blast in the city of a root in years. the attack comes at a time when tensions have been on the rise. amtrak will be making runs on part of the line between chicago and st. louis 110 miles per hour. that would be 3 miles per hour increase over the normal top speed. rail experts are not sure if it has the potential to be profitable or present a challenge to planes and cars. the cardinals now hold a three games to one lead over the san francisco giants phone last night's 8-3 win. st. louis will sen their pitcheo the mound. dennis: thank you. president obama critics taking
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him to task for the comments made on the daily show last night. listen. >> even you would admit it was not the optimal response to the american people as far as us all being on the same table. >> before americans get killed it is not optional, and we will fix it. dennis: his final debate with mitt romney focused on foreign policy set for monday. we have a former defense secretary for the clinton administration. also a one-time republican senator from maine. thank you for being with us. mr. secretary, what do you think of the state with his money, how hard can only press obama on the libya stuff? >> i think you can press them for asking the question what risk assessment was made in terms of putting up people on the ground in libya. obviously we want to help libya.
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but you have to make a risk assessment and then decide what sort of protection can you be provided, what kind of protection in the nation supply? and what were the classified or open communications coming back? there is an element of the president needs to explain what kind of information was coming back to the state department, to the national security advisors and to hii. he gets a briefing every single day and i think it is important people come to understand what are the risks involved. if there will be any element of attack should be on the lines of what kind of risk assessment was made and what military presence could we have had under the circumstances. dennis: who got the better on the libya-and ghazi dispute? >> i think president obama was able to turn the issue against governor romney because it came
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down to a debate over whether to use the words fact or terror in the rose garden. i think that is not the key issue. the key issue is what kind of analysis was made, what kind of grip was involved, was there a request for more military assistance, security assistance, was it denied and why. that is the crucial element not if you use the worst act of terror on the second day. dennis: how big of a role should iran play in this? >> iran will play a major role as will syria, russia. looking at if romney will be more flexible dealing with putin. china's rise in terms of economic power but a military region power will be an issue and syria and iran and what
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difference is there between israel and the united states. it will all be focused on by both candidates. dennis: for a lot of americans i think the way we do foreign affairs is defense policies. what role will be fenced play and what are the two sides? >> defense policy has to be integrated with diplomatic policy. we can't use our military power to solve every problem and i think robert gates indicated we need to put more money into ur state department because really we need diplomacy backed up by the military. there has to be a combination of the two. yet remain the strongest military in power on the planet and recognizing there are still limitations. you can't really achieve at the bargaining table unless you have a strong military to back it up and i think that is where the
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issue will be debated. dennis: the key question is how much you want to spend on that. thank you for being with us. very nice bipartisan answer, we appreciate it. sandra: take a look at the major averages at noon eastern time, the dow down 1.2%, down 166 points. we want to look at the biggest lacquer on the dow weighing on the overall averages, mcdonald's down $3.66, some disappointing earnings out today. here are the details, profits less than analysts forecast. estimates of 147, also down for the same quarter last year. the company is citing strength in the u.s. dollar with weakness overseas, weakness in europe and say unfortunately that condition ahead will be uncertain for mcdonald's so analysts weighing in, the stock taking a hit today. right now we are near the lows
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of the session. take a look at the year-to-date chart. mcdonald's shares t typically seen as a safe play, shares down about 10% this year. others chiming in saying they are leery about the outlook for mcdonald's going forward. a big global company with weakness in china and europe in ways on companies like this although i will tell you below $90 per share, average analyst rating overweight with $99 price target. while they might be talking down mcdonald's, they still expect it to go up. denis. dennis: thank you, sandra. google shares 24 hours ago at this moment 750, and they plunged more than $50 they're trying to come back now. new worries about the health of the ceo coming up. first a look at the losers on the s&p. [ female announcer ] e-trade was founded the simple belief
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% >> stocks every 15 minutes. the dow is down 171. nicole: looking at the dow jones industrials the dollar is down 1.2%. we are seeing 29 of 30 dow component in the red. bank of america, names like mcdonald's and general electric, microsoft and caterpillar was a non-and the s&p 500 and nasdaq down 2 percentage points and the s&p 500, 68 with down arrows. i want to look at google. weeks thought it selling off. we're doing a chart of apple
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versus google over time. there are reasons to favor google over apples saying apple may be more overbought technically and google arguably has better structure. he thinks that is the reactions we have seen for google, an overreaction and saying google is a better bottom of the two. >> ceo larry page got his voice back after four months of monk like silence did to a condition neither he nor the company will reveal. the medical mystery deepened yesterday when analysts heard him speak in a raspy whisper about the earnings slot that lacks $20 billion. listen. >> my voice is still worse so it is reasonably short.
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i am sorry about the scramble earlier today. dennis: like a metallic robotic apps on an iphone. withheld key details about the battle with cancer. we don't know how benign or serious the problem is and google feels no obligation to tell us. sandra: with e election two weeks away, debate this. each day we take on a different issue that matters. today we start with energy, a topic near and dear to my heart but also the jobs and the economy and the environment. joining us are robert bryce of the manhattan institute and and why is of american progress. thank you for joining us on this important topic. i will start with you first, robert. can the united states get energy independence for oil? everybody wants it but no one knows how to do it.
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>> it is a good question and also addressing the single most hackneyed phrase in american politics. every president since riccard nixon has talked about energy independence. my third book addressed the myths of energy independence, and the world's biggest energy consumer, exporting on the order of three million barrels of refined oil products. why would we be independent of this market place? it is people would go rhetoric but means absolutely nothing. sandra: we heard governor romney supports more drilling and the approval of the keystone pipeline, things that seem like a logical answers to our energy dependence problem in this country. do you agree with the governor's energy proposal? >> thanks for having me. no i don't.
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we all share certain values like reducing dependence on foreign oil, saving money at the pump and protecting our children and parents's public health. governor romney's plan will do none of those things. president obama's all of the above strategies actually accomplishing those goals. oil imports are the lowest since president clinton. we are doubling the distance a car and got a gallon of gasoline and investing in alternative energy technologies as well. governor romney would just go back to where we let big oil companies dictate our energy policy and in addition he would double the amount of special tax breaks to the largest oil companies. sandra: some argue it is because of the weakness in the global environment but also -- >> u.s. imports are down to the lowest levels they have been
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since president clinton. sandra: that is because we are using less in the current economic environment but also the president identified the fact that oil production is at a 15 year high. that is good news but mitt romney pointed out that is not because of anything the administration has done but private business and drilling. romney is insisting oil drilling permits are down 35% over the course of this administration. they are arguing they are stripping private enterprise, the ability to drill more in this country. >> governor romney misled when he said that. under the last three years of george w. bush the energy department reports they produce 1.8 billion barrels of oil from public lands and waters. under president obama's first week three years two billion barrels and more has been produced from public lands and waters under president obama than the last years of bush.
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what matters is permits and production. secondly -- sandra: robert, when -- robert: regarding all of the above let's look at all of the above. it is not all of the above, a lot of none of the below. look at president obama's record on cold, he attacked governor romney tuesday night in very bad -pfaith. that epa under president obama proposed a ruleethat would prohibit the construction of new coal-fired power plants in the united states i don't see how that is all of the above. all the above electric vehicles, congressional budget office released a report that estimated the cost to taxpayers of the obama administration supports for felt electric vehicle technology is on the order of $7.5 billion a year announced over $45 billion of subsidy per elector vehicles sold. this doesn't work.
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sandra: we will have more of these. thanks for joining us on a very important issue especially the election. dennis: we are debating the issues that matter all the way to election day. on monday we talk taxes with scott hodge and michael clinton. don't miss it at noon eastern time every day until election day. it is alarming. that is what our next guest says about the latest downturn in housing. look at the ten year treasury.
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tracy: i am tracy byrnes, it is a sea of red on wall street, the 20 fifth anniversary of the internet last monday. the dow is down 169 points. after a decade yahoo! is leaving the south korean market. it will be closing its doors by the end of the year after struggling to compete against local rivals. since entering the market in 1997 yahoo! is that operated the web site in korea and internet advertising company overture korea. if you think getting that gift card will get you in trouble this holiday season think again. according to an american express
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publishing group survey, 34% of female shoppers married or living with a partner said they want to receive a gift card and that is the latest from fox business network giving you the power to prosper.
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dennis: the fourth e.u. summit wrapping up today. european leaders buck the trend to make progress? ashley webster has the details. ashley: it was three years ago greece raised its hands and said we have a problem. we may not be able to pay our bills. it goes on. worries about fixing the crisis and weaker earnings pushing european markets lower today. the ftse in the end down 1/3%. the cac also of 1% and the dax down 3/4%. the two day summit in brussels over and some progress, e.u.
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leaders agreeing the ecb will take responsibility for overseeing euro zone banks including a banking supervisor who may be in place by the end of the year but leaders failing to agree on when the euro zone $650 billion rescue fund will start injecting cash directly into those failing european banks. german chancellor angela merkel says it will take time for the new supervisor to be fully effective. back to you. dennis: thank you very much. where a line going? sandra: to the housing debate. existing home sales dropping 2% after a gain of 8% in august and everyone was cheering on the housing market and even though we saw a gain of 11% on a year over year look at these numbers my next guest says these numbers are shocking, possibly alarming and joining me from chicago. managing partner at and the s
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data, what is so shocking about these numbers? >> look at it. the supply and demand. we are working through supply of housing. interest rates at the lowest prices and inventory diminished. this is an opportunity where we should be seeing people die in to this. uncertainty in the economic future, unemployment and the fact that so many people are trapped in homes undervalued. sandra: let me read from the national association of realtors' chief economist, despite occasional month to months setbacks, we are experiencing a genuine recovery. your thoughts on that statement? >> we are at a place where we could experience a recovery. i have been on before, we have got to get this on the glass half full perspective as possible. prices going up across the
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country and we are starting to -- encouraging to see first-time home buyers coming back into the market. that is the second month on month trend in that area but the volume of sales, we are not seeing people get active and get out and get involved in and buying a home and that is what we need to have. sandra: you sound really pessimistic although your record shows you have been saying this market hit bottom for quite some time. i use saying you don't believe your forecast right now? could things get worse than they are today? >> i sat with neil cavuto so many times, trying to put this -- we all want to see this thing improve but the reality is there are significant data points and this election will have more impact on housing than people can imagine and why we are not hearing candidates talk about it mitt romney is the only one who talked about dodd-frank and
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posted a housing policy on his web site. we have not seen that from obama and we can assume we have four more years of that. this is election is critical to the future of housing and it is not being talked about. dennis: it is a quarter till. stocks down and nicole petallides selling not flicker of hope on a dreary down day. nicole: let's look at the manufacturer in the u.s. doing so well charting all the way back to 1999, these are the levels we are seeing for honeywell. impressive on a day especially when we are seeing markets and major averages under pressure but honeyof well up 2% and hit $63.40 bringing it back to the late 1999 time. we are seeing numbers doing well, not because of aircraft and building control systems
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company and declining natural gas, that is why we are doing better in the quarter and top wall street's view and their outlook books -- looks good and the statement looking at 2013. and expect to deliver. sounds good enough and good enough to move higher. dow and the nasdaq and the s&p with down arrows and the nasdaq has improved down 1.8% rather than 2%. >> thanks to mitt romney's big bird costume we will tell you how big ahead. dennis: nasdaq, winners. we will be right back. ♪
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[ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where theylmost never fight about money. [ dog barks ] because right after ththey get married, they'll find some retirement people who a paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.
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dennis: despite the disappointing ousing data out today some investors are looking to make money in real-estate. jeff flock is in illinois with more. jeff: they are from wall street believe it or not. there in the middle of a renovation. you have been doing this for a long time, buying them and renovating them. wall street is coming to you. you had 12 wall street companies come to you in several months. >> that is correct. this asset class is proving to be a big advantage for them to buy into.
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jeff: you turned some of them away because they put these around real quick. >> i am in for the long run. this is where i am. this is where all the people that work for my company are. jeff: look at the companies that are getting involved in this. they have established homes they are building for brendel, single-family homes building for rental and other investment companies developing your reit or coming to use saying give me homes to turn around and make a profit. >> you buy enough homes or develop them and i will buy them and in a matter of years i will take and sell the office to the secretary market. jeff: a little wisdom from wall street? >> you learn from the last time -- didn't we learn anything from the last time? >> don't try to flip these around and repackage them. >> it is about communities.
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it is about people. it is about raising families. jeff: appreciate it. he is mr. mack and doing it the right way. jeff: dennis: thank you. turning off the drills and the socks is impressive. have a pretty good day. sandra: president obama and mitt romney making nice last night at new york's annual dinner to benefit catholic charities. >> i went shopping at stores in midtown. i understand governor romney went shopping for some stores in midtown. to go to old yankee stadium, the house that ruth built although he really did not build that. i hope everybody -- is aware of that. >> nice to finally relax. i was hoping the president would bring joe biden along this
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evening because he will laugh at anything. sandra: light-hearted moments last night at the al smith charity event. if you didn't catch it it was great and gave you a warm fuzzy feeling for the 15 minutes they did that, that they could come together. dennis: some bipartisan humor and self reverential humor and the joke about you didn't build that and mitt romney making a joke about rich stuff. when reagan was elected in 1980 a big part of it was he was funny and americans love humor. we haven't seen that from mitt romney. haven't had a chance to and more of that was a new side to him. sandra: i enjoyed it very much. on that note thanks to romney's comments in the first presidential debate big bird costumes selling big this halloween. so big they can't find them in a store.
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they are sold out. 6 the big bird costumes have blown off the shelves and companies can't make them fast enough anymore. [talking over each other] sandra: is that you? dennis: everybody likes to make fun of my big head. the big bird thing i want to say is fundamentally wrong to have a sexy version of the big bird costume. i want to rule that out. sandra: something about halloween makes the girls want to dress up. dennis: democrats and not mentioning big bird. after sesame people said take that off of the air. sandra: can't even dress up like dennis's big bird. dennis: i would like a friday the thirteenth type of thing, scary halloween. move over, gucci. may be a big new name on rodeo
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drive. sandra: the mall pricetag. $0.99 only in an exclusive as the company considers the opening a store on the most pricey retail strip in the united states. dennis: there goes the neighborhood.
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sandra: a real need a new york and on wall street. arcella underway. i am lori rothman. melissa: i am melissa frances. markets selling off down 166 points and plummeting on subpar earnings reports, week existing home sales and the dow by 13,382 and falling. lori: terrifying cyberattacks on banks can be stopped? adapting defenses and pummeling website for the fifth straight
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week. melissa: natural gas jumping to a 2012 high of 88% from april's lows. petroleum ceo randy joins us on natural gas's climb and what it means for his business. lori: let's start with stocks as we do every 15 minutes on the floor of the stock exchange with nicole petallides. stocks in sell-off mode. we were talking some of the drivers. what are traitors saying? nicole: we have drivers of earnings which have been weak and also europe still back on the map and those existing home sales were less than stellar. the dow is down 1.2% at its lowest that at 13,367. not too far off of its lows and the nasdaq down 2 percentage points and we see tech and the significant pressure but 29 of 30 dow

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